CHARLOTTE — A Richmond County woman is facing federal charges, accused of “orchestrating a scheme” that defrauded a U.S. Department of Agriculture program out of millions of dollars.
Federal prosecutors allege that 64-year-old Linda Faye Hough, of Rockingham, submitted fraudulent applications to the USDA’s Discrimination Financial Assistance Program for herself and others.
Those applications allegedly “contained false information that falsely made the applicants appear eligible for a DFAP award,” according to a press release issued by the U.S. Attorney’s Office for the Western District of North Carolina.
The press release states that the program was established in 2022 by the Inflation Reduction Act, appropriating $2.2 billion in federal funding “to compensate farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs prior to January 2021.”
Applicants, for rewards up to $500,000 each, were reportedly required to submit documents to prove they were eligible for the program, including:
Prosecutors allege that Hough “caused approximately $9 million in fraudulently obtained DFAP funds to be disbursed to her and other applicants.” Hough is also accused of soliciting and receiving “kickback payments” from applicants, after they received awards.
Hough is charged with one count of mail fraud and six counts of making false, fictitious, or fraudulent claims to a federal program.
“A program designed to remedy wrongdoing instead turned into another vector for criminals to defraud the taxpayer,” USDA Inspector General John Walk said in a press release, adding that his office is “committed to ensuring taxpayer money is wisely spent.”
“Those who steal from the public can expect to be found and prosecuted to the fullest extent of the law.”
The case was investigated by the USDA Office of Inspector General and the Federal Bureau of Investigation, with help from the N.C. State Bureau of Investigation’s Financial Crimes Unit.
“When a federal program is defrauded, every taxpayer becomes a victim and those deserving of assistance are essentially robbed of much needed financial help,” Reid Davis, special agent in charge from the FBI’s Charlotte Field Office said in a statement. “Fighting fraud is one of the highest priorities in the FBI. We will work tirelessly with our law enforcement partners to take down anyone who unlawfully obtains federal assistance to use in their personal piggy banks.”
The case is being prosecuted by Special Assistant U.S. Attorney Eric Frick.
If convicted, Hough faces up to 20 years for the mail fraud charge and up to five years for each of the fraudulent claims charges.
The press release does not indicate if any others will be or have been charged in connection to the alleged scheme.
All defendants facing criminal charges are presumed innocent until proven guilty in a court of law.
